Morocco projects 3 percent growth this year, as budget deficit declines
Morocco, Economics, 4/24/1999

Morocco will projects a growth rate of 3% in 1999 and of 5% in year 2000, Moroccan Economy and Finance Minister Fathallah Oualalou said on Wednesday.

The government will continue efforts to curb inflation and control the major internal and external economic balances, Oualalou said in a presentation of the 1999-2000 draft appropriation bill before the house of representatives (lower house of the parliament).

A 1996 constitutional amendment set the Moroccan fiscal year from July to June to enable the bill drafters take into account the state of the cereal harvest and agriculture in general. Agriculture represents around 20 percent of the country's GDP and employs nearly half of an estimated 10-million workforce.

The economy and finance minister heralded a continued increase in imports and exports and a stabilization of the phosphates sector, one of the major vectors of Moroccan economy.

The draft appropriation bill predicts a 2.8 percent decrease in the budget deficit, while savings will stand at nearly $600 million. Up to 36% of the amount will be contributed to equipment projects over 28% last year.

Public expenditures will stand at nearly 122 billion dh ($1 is 9.7 dh), 8.1 percent of the budget, while receipts will stand at around 106 billion dh. The receipts will come mainly from direct and indirect taxes, custom duties and privatization.

The public service will have its size reduced, and efforts will be made to improve its performance.

The government will see to suppressing vacant positions following their holders' retirement and will create 10,980 new positions only to cover the necessary needs of public administration.

Part of the 1999-2000 appropriation bill, the government will continue to handle the unemployment problem through the training-integration program that will cover 25,000 university graduates.

According to the draft appropriation bill, Morocco recorded a 6.3% growth rate in 1998, inflation stood at 2.8% and the treasury deficit was at 3% of the GDP.

During the same year, investments increased by 13%, equipment goods imports jumped by 36% and tourism receipts progressed by 18%. The remittances of Moroccan expatriates also increased by 6%.

After its presentation to the house of representatives, the appropriation bill will be tabled before the chamber of advisors (upper house), before being voted by the MPs.

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